STOP Payments Fraud Act of 2026

This Act may be cited as the Strengthening Transaction Oversight and Preventing Payments Fraud Act of 2026 or the STOP Payments Fraud Act of 2026.
The Expedited Funds Availability Act (12 U.S.C. 4001 et seq.) is amended—
in section 603 (12 U.S.C. 4002)—
in subsection (a)(2)—
by striking subparagraphs (A) and (F);
by redesignating subparagraphs (B) through (E) as subparagraphs (A) through (D), respectively; and
in subparagraph (C), as so redesignated, by adding and at the end; and
in subsection (d), by striking paragraph (1) and the heading to paragraph (2); and
in section 604(a)(1)(D), by striking subparagraph (A), (B), or (C) and inserting subparagraph (A) or (B).
Section 604(c) of the Expedited Funds Availability Act (12 U.S.C. 4003(c)) is amended—
in paragraph (1), in the heading of the paragraph, by striking In general and inserting Collectability;
by redesignating paragraphs (2) through (4) as paragraphs (3) through (5), respectively;
by inserting after paragraph (1) the following:
In accordance with regulations which the Board, jointly with the Director of the Bureau of Consumer Financial Protection, shall prescribe, subsections (a)(2), (b), (c), and (e) of section 603 shall not apply with respect to any check deposited in an account at a depository institution if the receiving depository institution has reasonable suspicion to believe that the check is false, unauthorized, or otherwise involves fraud. For purposes of the preceding sentence, reasonable suspicion to believe that a check is false, unauthorized, or otherwise involves fraud requires the existence of indicators that would lead a reasonable person to suspect that the check involves fraud. Such reasons shall be included in the notice required under subsection (f).
A receiving depository institution that has reasonable suspicion to believe that a check is false, unauthorized, or otherwise involves fraud, as described in subparagraph (A), may also have reasonable cause to believe that such check is uncollectible from the originating depository institution, as described in paragraph (1).
in paragraph (4), as so redesignated, by striking paragraph (1) and inserting paragraph (1) or (2).
Section 604 of the Expedited Funds Availability Act (12 U.S.C. 4003) is amended by adding at the end the following:
With respect to an account established at a depository institution, and without regard to whether the account was established by a new depositor, upon the occurrence of circumstances identified by rule by the Board, jointly with the Director of the Bureau of Consumer Financial Protection, as associated with greater fraud risk, the provisions of paragraphs (1) through (3) of subsection (a) shall apply with respect to any deposit in such account for a period of time determined by rule by the Board, jointly with the Director of the Bureau of Consumer Financial Protection, but not to exceed 60 days for each such occurrence.
In accordance with regulations which the Board, jointly with the Director of the Bureau of Consumer Financial Protection, shall prescribe, section 603(a)(1)(B) shall not apply with respect to funds received by a depository institution by wire transfer if the receiving depository institution has reasonable suspicion to believe that the wire transfer is false, unauthorized, or otherwise involves fraud. For purposes of the preceding sentence, reasonable suspicion to believe that a wire transfer is false, unauthorized, or otherwise involves fraud requires the existence of indicators that would lead a reasonable person to suspect that the wire transfer involves fraud. Such reasons shall be included in the notice required under subsection (f).
No determination under this subsection may be based on any class of wire transfers or persons.
If the receiving depository institution determines that a wire transfer for credit to an account is a wire transfer described in paragraph (1), the receiving depository institution shall not assess any fee for any subsequent overdraft with respect to such account, if—
the depositor was not provided with the written notice required under subsection (f) (with respect to such determination) at the time the wire transfer was delayed for credit; and
the overdraft would not have occurred but for the fact that the funds so transferred are not available.
Each agency referred to in section 610(a) shall monitor compliance with the requirements of this subsection in each regular examination of a depository institution. For the purpose of this paragraph, each depository institution shall retain a record of each notice provided under subsection (f) as a result of the application of this subsection.
Nothing in this Act may be construed to restrict or prohibit a depository institution involved with a deposit by check or wire transfer from communicating to any other depository institution also involved with the deposit that a depository institution has invoked an exception under this section to some or all of the requirements of section 603 with respect to the deposit.